Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Halcyon Agri — Q3 2019 Earnings Presentation
16 slides from Singapore Exchange's earnings presentation, Nov 14, 2019
Slide 1: Q3 2019 Results Presentation
Q3 2019 Results Presentation 14 November 2019
Slide 2: Important Notice
Important Notice This presentation has been prepared by Halcyon Agri Corporation Limited (“Company”) for informational purposes, and may contain projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views ar
Slide 3: Income Statement Highlights
Income Statement Highlights Q3 ended 30 Sept 9M ended 30 Sept US$m 2018 2018 2019 (Restated) ▲% 2019 (Restated) ▲% Revenue 513.1 552.9 -7.2% 1,425.0 1,602.7 -11.1% Gross profit 26.9 32.5 -17.3% 92.6 101.6 -8.8% Operating profit (5.6) 7.9 n.m. 9.0 14.6 -38.2% Operating (loss)/profit after working cap
Slide 4: Q3 2019 Results Review
Q3 2019 Results Review • Results in the quarter were impacted by a confluence of conditions that, while adverse to near-term results, point towards a turning point in the natural rubber price cycle: o Continued downward pressure on demand - Concerns about global economic growth adversely impacted de
Slide 5: Cash flows
Cash flows Q3 ended 30 Sep 9M ended 30 Sep US$ in millions 2019 2018 2019 2018 Operating cash flows before working capital changes 10.3 19.9 24.3 38.0 Changes in working capital 28.2 10.2 2.1 (93.8) Payment of taxes and working capital loan interests (6.7) (7.8) (22.7) (16.6) Cash flow from operatin
Slide 6: Balance sheet overview
Balance sheet overview US$ in millions Sep-19 Jun-19 Mar-19 Dec-18 Assets partially funded by debt Working capital employed 600.2 636.9 659.3 539.4 Working capital loans 599.2 630.9 636.4 520.4 % Efficiency of working capital funding 99.8% 99.1% 96.5% 96.5% Operational long term assets 942.5 954.0 9
Slide 7: State of natural rubber demand and supply
State of natural rubber demand and supply Supply factors Demand factors • World economic outlook remain sturdy in the midst of the near-term challenges IMF 2020 growth projection 3.4% • The vast majority of world supply comes from smallholder- • End-user market sales remained strong, signalling end-
Slide 8: Halcyon Agri plays a central role in the road ahead
Halcyon Agri plays a central role in the road ahead 1 Greater impetus to realise the 2 Opportunities in a thinning 3 Investing in market adjustments to sustainability agenda for long term competitive landscape, rise of third- address temporary demand weakness industry success party platforms/aggrega
Slide 9: Concluding thoughts
Concluding thoughts “ Natural rubber is a strategic material; vehicles don’t move without it. At some point, it stands to reason that we will enter a period of restocking, by which time the supply of natural rubber will be a problem that won’t be easily solved. The field is thinning, which is ultima
Slide 10: Appendix 1: Market price movement
Appendix 1: Market price movement
Slide 11: Movement in SICOM TSR20 1st position
Movement in SICOM TSR20 1st position 1,600 9M 2019 9M 2018 1,550 1,500 1,450 1,400 1,350 1,300 1,250 Average Q1 2018: US$1,474; Average Q2 2018: US$1,400; Average Q3 2018: US$1,329; Average Q1 2019: US$1,397 Average Q2 2019: US$1,513 Average Q3 2019: US$1,348 1,200 Jan Feb Mar Apr May Jun Jul Aug Se
Slide 12: Appendix 2: Segmental Performance
Appendix 2: Segmental Performance
Slide 13: Halcyon Rubber Company (HRC)
Halcyon Rubber Company (HRC) Revenue (US$m)1 Sales Volume (mT)1 • Recent developments in 1,800 natural rubber market, as Revenue (US$ per MT) well as convergence in 1,600 454.1 448.6 quality requirement at 289,460 1,400 285,901 283,313 279,927 414.7 278,032 399.5 393.3 1,200 consumers’ end, have see
Slide 14: Corrie MacColl (CMC)
Corrie MacColl (CMC) Revenue (US$m)1 Sales Volume (mT)1 2,000 Revenue (US$ per MT) 168.7 166.2 165.4 102,597 102,308 100,303 158.2 1,600 100,021 157.2 97,958 139.2 85,991 83,462 127.9 1,200 • Slight decline in sales due 99.5 62,125 61,356 93.8 800 to procurement cutbacks 400 by consumers amid macro
Slide 15: Updates on HeveaConnect (HC)
Updates on HeveaConnect (HC) Digital marketplace for HeveaPRO-certified natural rubber Platform traffic since Apr- Solid capital base 19 contributed by strategic partners • Six months since going live, HC has 28,000 MT Secured strategic investments been charting encouraging progress in their quest t
Slide 16: Thank you
Thank you